I’m using this indicator to anticipate intraday turns In the S&P
More important than predicting the market is understanding its
behavior. Notice the close correlation between the S&P emini contract
and the interest rate on the 10-year note. The link between the two is
oil, which threatens an economic slowdown. When the S&P made a
relative high after 12:30 pm, T-note yields were having none of it. In
markets such as we’ve been seeing, it helps if you can act like a trader, but
think like a central banker.
Brett N. Steenbarger, Ph.D. is Associate Clinical
Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical
University in Syracuse, NY and author of The
Psychology of Trading (Wiley, 2003).
As
Director of Trader Development for Kingstree Trading, LLC in Chicago, he has
mentored numerous professional traders and coordinated a training program for
traders. An active trader of the stock indexes, Brett utilizes
statistically-based pattern recognition for intraday trading. Brett does not
offer commercial services to traders, but maintains an archive of articles and a
trading blog at www.brettsteenbarger.com.